Currently, there are many computer-based auction systems (e.g., eBay, CommerceOne, SupplierMarket, SupplierOne, MaterialNet, etc.) in which bidders bid against each other in one or more rounds of bidding until the most advantageous bid is reached for a scope as defined by the auction solicitor. These auctions have worked well and have been quite successful in driving prices down in reverse auctions and prices up in forward auctions.
The current interest in computer-based auctions has prompted innovations in the format of auctions. For example, in the prior art, the bidding phase of an auction often lasted for only a few minutes, which is short enough to continuously hold the attention of all of those interested in the outcome of the auction. In contrast, auctions today, like those on eBay for example, typically last for days. Although a longer auction has many advantages, it is too long for any single bidder to continuously monitor the bidding. To alleviate this disadvantage, eBay, for example, enables a bidder to submit a “proxy bid.” A proxy bid is a direction to the auctioneer (e.g., eBay's data processing system, etc.) or other entity to prepare and enter one or more bids in behalf of the bidder under terms and conditions specified by the bidder.
The proxy bid capabilities known in the prior art, however, have their limitations, and, therefore, the need exists for more advantageous kinds of proxy bids and auction formats.